Once you decide to hire someone to work for you in any sort of business, you need to create a legally binding agreement. These are known as employment contracts and it states the rules, the obligations, and the rights of all parties involved.
The idea of a contract is to give you peace of mind while also protecting the employee. We are going to discuss the main and most relevant things that need to be included in this sort of contract.
The conditions required for legal contract recognition include:
• It includes specific intentions to start a business relationship within a legal context
• It shows a specific offer of employment that the prospect willingly accepts
• It shows consideration in return for the fulfillment of obligations
• It provides proof in order to limit risks for the employer when dealing with disputes
Ensuring clarity and details is essential for Employment Contracts
It is essential to provide clear agreements that show all the requirements and obligations of the employee. This should also be the case for their rights and benefits.
The following list should give you the essentials of what an employment contract should include:
•The full name of the employer
• The title of the job position the employee will perform
• The exact date when the person begins to work as an official employee or trainee
• The basis of employment or the period of employment if it applies
• The exact hours and days of work the employee needs to meet
• The leave entitlements including annual and personal leave
• The minimum period of time to give notice by both employee and employer in case of ending the business relationship
• The compensation in case the employee decides to terminate the business relationship
• All privacy policies and confidentiality statements need to be included in detail
• A valid restrain to protect employer’s trade secrets and confidential information
How to protect your client base and confidential information
This is probably one of the biggest concerns for any employer looking to hire new talent that handles confidential information. When an employee steals or uses the information to help competitors start their own businesses, this can turn out to be very damaging. There are several confidentiality inclusions to keep in mind when creating your contract to help prevent this issue from happening.
The following are the most typical inclusions:
• Post-employment restraints for a period of time that ensures no clients or staff from specific places are solicited
• Non-compete restraints to ensure no direct competition within proximity for a specified period of time
• The misuse or theft of any information regarding client details such as their contact information
• Any client poaching or soliciting of employees as well as restraint of trade and non-solicitation clauses
Drafting Employment Contracts
It is important to consider that this is just a guide on some of the most relevant content that is included in employment contracts. The type of contract that is created for this purpose can be very different for certain companies, job positions, and industries.
The main thing to keep in mind at all times is that the contracts need to be clear and concise. Clarity has to be the number one aspect of any legal contract for the purpose of employment. This means that your contract needs to be drafted by an experienced professional with the appropriate expertise.
Final thoughts
This article serves the purpose of giving you some core essentials on the requirements of your employment contracts. It is crucial to look for HR assistance in order to ensure that you cover all required basis. There are many factors to consider depending on your line of business and the requirements, benefits, and regulations involved in the contract.
At HR Expertise, our HR consultants provide assistance with drafting employment contracts. Contact us today, we would love to work with you.
Cedric has 13+ years of demonstrated experience as a senior HR generalist with a broad commercial and project-driven background within leading global organisations across a range of industries. He is qualified with an MBA from the Australian Institute of Business (AIB), an Advanced Diploma of Management specialising in Human Resources and an HR Consulting – Business Partnering course from the Australian Human Resources Institute (AHRI).